The 2017 FBT year is almost at an end
As mentioned in an earlier Top Tax Tips, the 2017 FBT year is about to end on 31 March 2017.
Nexia Edwards Marshall NT recently released a client alert providing a brief overview of how FBT operates (e.g. which records to keep and what are some examples of fringe benefits) as well as detailing some strategies to reduce an employer’s FBT liability.
The due date for lodgement and payment of any 2017 FBT liabilities is 22 May 2017 – however, if we lodge your tax return electronically, the due date for lodgement will only be 26 June 2017.
Please contact your Nexia Edwards Marshall NT Adviser if you are uncertain whether a fringe benefit exists and how fringe benefits are taxed especially whether any concessions are available. By doing so, we can help you identify potential FBT risks and opportunities for you.
Easier way to claim GST input tax credits if you are a small restaurant, cafe or caterer
A restaurant, cafe or caterer with a GST turnover of $2 million or less (GST exclusive) can use a simplified method to determine their entitlement to GST input tax credits on their acquisition of trading stock (i.e. by basically taking a snapshot of trading stock purchased during a sample period, determining the split between taxable and GST-free trading stock purchases, and extrapolating this split over the whole income tax year – obviating the need to keep all tax invoices to determine the split).
Although this particular simplified method can only be used by small food retailers to calculate the amount of input tax credits on trading stock purchases, other GST simplified accounting methods may be available if you are a small business.
Lodge your 2016 research and development (R&D) claims by 1 May 2017
Certain companies can claim a tax offset for expenditure incurred on R&D activities. The aim of this offset is to encourage companies to invest in R&D work to create new or improved materials, products, devices, processes and services.
Lodging your claim on time may give rise to the following benefits for you:
- a cash injection (e.g. a cash rebate equal to 45% of the amount spent on R&D activities) for companies that have a turnover of less than $20 million a year; or
- a non-refundable tax offset of 40% for companies with a turnover of $20 million or more a year (i.e. the offset reduces tax payable and therefore can only be used in years when the company has taxable income).
We note that the deadline for the lodgement of the 2016 R&D tax concession claim is 1 May 2017 (because 30 April 2017 is a Sunday). We can assist you with lodging your claim.
How can Nexia Edwards Marshall NT help you?
For any questions or to discuss any of the above in relation to your personal situation, please contact Sarah McEachern or your Nexia Edwards Marshall NT Advisor.